Kilifi County's financial woes have been highlighted by suppliers and contractors who appeared before the Senate County Public Accounts Committee (CPAC). They expressed concerns over unpaid bills, which have reached Sh10.7 billion, making Kilifi's outstanding obligations the second-highest among Kenya's counties after Nairobi. The suppliers reported that some debts have remained unpaid for years, with some dating back a decade.
The committee, during a public engagement at the Kilifi County Assembly in Malindi, sought answers over the county's financial management, procurement records, and payment of pending bills. Senator Moses Kajwang described Kilifi as "technically insolvent" due to its financial struggles. Data presented to the committee showed that the county's revenue-to-debt ratio stood at about 70 percent, raising concerns about its ability to meet financial obligations.
In the 2024/25 financial year, Kilifi reported a total revenue of Sh14.3 billion, with Sh12.8 billion from the equitable share and Sh1.5 billion from its own-source revenue. Suppliers told the committee that delayed payments had left some businesses struggling to meet their own financial obligations, with some facing bankruptcy and the possibility of having their assets auctioned. Individual cases highlighted the scale of the problem, with one supplier owed Sh17 million and another Sh16 million.
The suppliers also raised concerns over procurement and financial records, citing poor record-keeping, unremitted statutory deductions, and a lack of professionalism in the management of county finances. They alleged that suppliers are sometimes paid only part of what they are owed and forced to wait for months, in some cases up to a year, before receiving the balance.
The committee expressed concern over allegations surrounding the processing of payments through the Integrated Financial Management Information System (IFMIS). According to data from the Office of the Controller of Budget, 612 transactions valued at Sh3.2 billion were voided in IFMIS. The committee linked the transactions to concerns over the accumulation of pending bills and called for scrutiny of the circumstances surrounding the cancellations.
Suppliers further alleged that politically connected individuals or those willing to offer bribes could receive preferential treatment. They claimed that previous efforts to verify the county's debt had failed to provide a lasting solution, with at least two task forces established to verify and validate pending bills, but their findings were never made public.
Senator Kajwang suggested that the Senate explore mechanisms for settling verified debts directly at source, where sufficient documentation exists to establish that money is legitimately owed. He also called for the involvement of National Treasury Cabinet Secretary John Mbadi, arguing that the crisis was threatening businesses and the wider local economy. Governor Gideon Mung'aro was scheduled to appear before the committee but was unable to attend; the Deputy Governor was directed to appear on September 22.
Key points
- Kilifi County's pending bills have reached Sh10.7 billion, making it the second-highest among Kenya's counties.
- Suppliers and contractors have expressed concerns over delayed payments, with some debts dating back a decade.
- The Senate County Public Accounts Committee has called for scrutiny of the circumstances surrounding the cancellations of 612 transactions valued at Sh3.2 billion in IFMIS.
